Analysis of Product and Pricing Strategies for Hanson Productions

This report examines Hanson Productions' challenges in launching their new musical play, "Detroits 1967," at a Broadway theatre. The report analyzes the company's strengths, weaknesses, opportunities, and threats (SWOT), highlighting issues such as budget constraints, venue selection, and marketing strategies. The core problem statement focuses on poor budget management. Key assumptions are evaluated, and strategic alternatives, including seating capacity, ticket pricing, and production costs, are analyzed. The report includes an implementation timeline and concludes that effective strategies are needed to attract a wide audience, manage costs, and maximize revenue. The financial impact of revenue is negative, while profitability is positive. The report provides a comprehensive overview of the company's situation and offers recommendations for improvement. The report also suggests the need to reduce operating costs and optimize marketing efforts.

0Running head: PRODUCT & PRICING STRATEGIES
Product & Pricing Strategies
Name of Student
Name of University
Author Note

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Running head: PRODUCT & PRICING STRATEGIES
Executive Summary
The company is located in New York City which is very good. They always focus on
production of good storylines and good musical plays and films and not focus on quantity as
well. It is observed that the musical play which the company is going to be implemented lacks
the proper budget estimation for its production. The plays are arranged in the off filed venues of
Broadway theatres which tell that people living in remote locations could not be able to come
and see the musical play which will be launched. The management is not capable enough now to
finalize the show as there is lot of work to be done and the materials the total cast is not finalize
for the show yet. The management is not sure that how they will be attracting the customers and
seeking for that appeal in the storyline as well.

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Running head: PRODUCT & PRICING STRATEGIES
Contents
Executive Summary.........................................................................................................................1
Introduction......................................................................................................................................3
SWOT Analysis...............................................................................................................................3
Problem Statement...........................................................................................................................4
Key Assumptions Evaluated............................................................................................................5
Analysis of the each strategic alternative........................................................................................5
Summary of Rationale.....................................................................................................................6
Implementation................................................................................................................................7
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

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Running head: PRODUCT & PRICING STRATEGIES
Introduction
The study is based on the analysis of a core problem which is raised for Hanson
productions for the production of its new musical play. They want to produce a musical play in
Broadway theatre known as Detroits 1967. This is a historical play and now Hanson production
is focusing on this play to be implemented successfully in this reputed theatre as well. It is seen
that Hanson Production is established in the mid period of 1950s by a husband and wife team.
Hanson Productions had earned acclamation for its Broadway shows (Nagle, Hogan & Zale,
2016). The goal of this company is to establish and prosper the arts in New York City. The first
production of Hanson Production was Cat on a Hot Tin Roof which has been played in an
audience of say 50 people and most of them are the friends and the relatives of the cast. The
company has got its first major success in the period of 1970s, the script was very good
established by Hanson production (Rhine & Murnin, 2018). After that it has become one of the
most reputed and traditional production Company operating in New York City for so many years
now. They have started to commission new works or plays. They had contributed hugely in the
economy of the country by generating huge revenue and profitability from their musical plays
and other shows they arrange it.
SWOT Analysis
Strengths
 Good Reputation.
 Huge Employee Strength
 Prime Location
Weakness
 Lack of budget
 Plays arranged in off field venues of
Broadway theatres.

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Running head: PRODUCT & PRICING STRATEGIES
 Quality production
 Excellent content of the stories
 Poor management.
 Appeal factor
 Venue Selection.
Opportunities
 Attraction of wide audience
 Cultural Diversity.
 High revenue Generation
 Understanding customer expectations
Threats
 Management of tourist crowd.
 High prices of Tickets.
 High Competition from other production.
 Subject matter Presentation
Problem Statement
The core problem statement for Hanson Productions could be the poor management of
budget for its new musical play to be organized at Broadway Theatres. The factors which
contribute to this core problem statement provide the scope of improvement by Hanson
Production for the successful implementation of the musical play Detroits 1967. The first factor
could be the production of the large scale and large size musical play of having around 20 cast. It
is difficult for the management to prepare a solid and fixed budget for this type of huge scale
musical play for Hanson Productions (McGrath, 2012). The next could be the finalization of the
show is not yet to done with the crews required for the launching of this musical play. The
inappropriate marketing materials which were used earlier have not been successful and now it
will require innovative marketing materials which should require high capital investment in
marketing for this upcoming musical play by Hanson Productions (Hinterhuber & Liozu, 2012).
The budget was not prepared properly for the costumes and it is again not finalized still for this
upcoming play as well. The funds were not arranged properly and Shen need to arrange it from
the other areas. The next could be the high ticket prices for the musical play to be launched in the

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Running head: PRODUCT & PRICING STRATEGIES
market by Hanson Productions. This could reduce the high revenue generation as the sales will
be declined. The revenue expectations have been huge as compared with the revenue in
Broadway and the other three theatres which are in the list of launching this musical play after
eight weeks time.
Key Assumptions Evaluated
There are various assumptions to be made by the management of Hanson Productions in
order to launch this upcoming musical play in 8 weeks time. The assumption is that the smaller
theater saves money for them. The venue selection should be on the preferences of the audience
and the seat capacity. The ticket discounts on the first six months after the launch should be low.
The ticket prices should be matched up with the overall sales and revenue generation of the
company. There is the need of termination agreement to be made by Hanson Productions with
the theatres that have less rental fee based on the gross ticket sales. The ticket prices needs to be
set at a fixed rate and there should not be any kind of frequent changes to be done which may
develop negative publicity (Baker, 2014).
Analysis of the each strategic alternative
The analysis of each of the strategic alternatives are explained below
Seating capacity- It is seen that the seating capacity for St. James theatre is 1623 so there
is strong link between the revenue generation and the seating capacity. So this is turned out to be
the best theatre for production. The audience as well the cast will be attracted with medium
capacity.

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Running head: PRODUCT & PRICING STRATEGIES
Organizing Ticket prices- It is seen that for a musical play the price code is divided in
three categories. From the information provided on average ticket prices, this musical play will
be targeting the baby boomers so the rice code to be set is the code B.
Production Costs- It is important that for a musical play the production cost is always
huge which restricts the cost for Hanson Productions to implement innovation in their musical
plays. The production costs for a musical play in Broadway is $5,703,056 which is considerably
huge.
Operation Costs- The operation costs for the Broadway theaters in playing a musical will
be $414338 and this is also a huge amount to be invested in operating it. So the operating costs
needs to be reduced.
Capital required- The total capital required for the study will be $13,081,672. The budget
for St James theatre weekly one is $ 623,298. The capital is not appropriate for getting revenues
against this estimated budget.
From the overall financial information, it is observed that the financial impact of the
revenue is negative. The financial impact on the profitability is positive.
Summary of Rationale
It is seen that Shen has been fixing the average price of $ 79.10. So according to this
ticket price the overall average weekly sales of $ 19164.80. The weekly budget for St James
theatre is $ 623,298. The operation cost is higher than the average weekly sales of this theatre. So
the profitability and revenue is not feasible. So the decision for selection of this theatre is not
feasible for Hanson Production.

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Running head: PRODUCT & PRICING STRATEGIES
Implementation
Tasks Timeline What When Where How
Story Selection 26th March,
2018
Content for the
musical play
When the
competition is
tough
St.James
Theatre
Feedback from
scriptwriters
Venue
Selection
8th April,2018 Theatre where
the play will
be done
When the
gross sales and
publicity is
positive.
St.James
Theatre
Feedback from
theatre owners.
Materials
Selection
25th May, 2018 Selection of
materials used
by the cast and
crew.
When it is not
liked by the
customers.
St.James
Theatre
Consultation
with designers
and budget
monitoring
Budget
Planning
12th June, 2018 Preparation of
overall capital
When it is not
fixed.
St.James
Theatre
Analysis of
past sales and
revenue
reports.
Marketing 23rd July, 2018 Development
of marketing
materials
When sales
need to
increase.
St.James
Theatre
Past marketing
data and
analysis of
marketing

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Running head: PRODUCT & PRICING STRATEGIES
strategies.
Legal patents
and copyrights
12th
September,2018
Development
of patents
When sales
need to
enhance.
St.James
Theatre
Company
Policies
Target
Segment
Identification
7th October,
2018
Development
of target
segment for
attraction.
For
understanding
audience
expectations
St.James
Theatre
Audience
Preferences
and lifestyle
analysis
Ticket Price
Selection
2nd November,
2018
Preparing price
for tickets
Increasing
revenue
St.James
Theatre
Comparing
ticket prices
for musical
play at theatres
in New York
City.

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Running head: PRODUCT & PRICING STRATEGIES
Conclusion
From the study it is evident that the play is only 8 weeks to be launched and now the
management could not be able to have the selection of the venue where the musical play will be
organized. It is concluded that the play should be organized properly so that wide audience will
be attracted. There is the integration of different culture of people took place. The company has
the opportunity of generating high profitability and revenues from this play yet to be launched.
This will help in understanding of the customer expectations. It concludes that the management
of tourist crowd requires high budget. The high prices for the tickets as the theaters running in
New York City are quite expensive for the customers to have the plays to be introduced. The
high competition from the other theatres and production companies as well the subject matter to
be presented in front of the audience can be high threat for the revenue generation of Hanson
Productions.

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Running head: PRODUCT & PRICING STRATEGIES
References
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Patnaik, M. S. S. (2016). U.S. Patent Application No. 14/723,362.
Hinterhuber, A., & Liozu, S. (2012). Is it time to rethink your pricing strategy?. MIT Sloan
Management Review, 53(4), 69.
Johnson, G. (2016). Exploring strategy: text and cases. Pearson Education.
Kahn, K. B. (2014). Product planning essentials. Routledge.
McGrath, M. E. (2012). Setting the PACE in product development. Routledge.
Moghaddam, F. M., & Foroughi, A. (2012). The influence of marketing strategy elements on
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Rhine, A. S., & Murnin, P. M. (2018). Day, duration, and start time: are the arts providing what
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Running head: PRODUCT & PRICING STRATEGIES
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Successful by the World's Most Profitable Companies, 55-78.
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